Canadian Dollar Strengthens After Ceasefire

2026-04-08 13:21 By Felipe Alarcon 1 min. read

The Canadian dollar strengthened toward 1.38 per US dollar as the greenback retreated following President Trump's decision to delay infrastructure strikes by two weeks in a conditional ceasefire.

This relief rally stems from a sharp plunge in WTI crude after Iran agreed to reopen the Strait of Hormuz for a two-week window to facilitate negotiations.

While lower energy prices typically weigh on the loonie, the broader collapse of the US dollar index to a four-week low has provided a net gain for the Canadian currency.

Investors are now recalibrating the domestic outlook as the immediate threat of energy-driven stagflation recedes although the loonie continues to underperform peers like the aussie and sterling which are less tied to the petroleum complex.

Treasury yields have further eroded the greenback's carry advantage even as the market remains cautious ahead of Friday’s US inflation data.



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